Bitcoin price just exploded, setting a new higher high following last month’s plummet to below $4,000. Is this the start of a new bull market as the halving looms closer?
Weekly candlesticks suggest that an explosive impulse upward is likely to occur, potentially making for the perfect pre-halving set up for a massive rally.
Bitcoin Price Weekly Candlestick Wicks Changing Direction Is Telling
The cryptocurrency market has been experiencing the longest stretch of extreme fear ever, according to the crypto market fear and greed index. Sentiment is so low and fearful, due to the recession, the coronavirus, and due to post-traumatic stress syndrome leftover from the catastrophic collapse on Black Thursday last month.
Bitcoin price collapsed from $10,000 to under $4,000, but in less than a month the asset has doubled in value, rising from $3,800 to $7,600 today with the new high set.
Related Reading | Number of Bitcoin Whales Hits Previous Pre-Bull Run Level
But when investors are fearful, it is the time that smart money becomes greediest and begins accumulating assets at low prices, while others miss the boat.
Bitcoin has been at the lowest price in well over a year, offering a value for investors who could buy the asset at a “fire sale” discount.
On the way up, each weekly candlestick left a wick to the upside, showing that each push into resistance was rejected before close. But the last two weekly candles, are showing wicks to the downside, indicating that the same resistance has flipped to support and that a strong impulse move upward is next.
daily close took back the weekly open…
weekly wicks are shifting directions at the swing point of the last major upward impulse… probably not worth paying attention to if you have a bearish bias though. pic.twitter.com/VTiMYQCjOU
— Stackin’ ฿its (@StackinBits) April 23, 2020
Explosive Impulse Move Possible, Halving Could Provide the Trigger
With sentiment so low, and a recession essentially here, exactly what would be the driving force behind Bitcoin‘s impulsive explosion upward, if investors are simply too fearful to buy at these prices?
A few factors could have an enormous influence.
Related Reading | Crypto Countdown: Exactly Three Weeks Remain Until The Bitcoin Halving
Bitcoin’s halving is just a couple weeks away at this point, and the event has long been expected to have extremely bullish implications for the cryptocurrency.
The idea is that supply is slashed, causing demand to outweigh the limited supply, and price rises. Coindicing with all of this, are weekly price charts showing a switch to bullish momentum, and stimulus packages flooding the economy with excess cash for some. Some of this cash flow could make its way into cryptocurrencies, especially with Bitcoin’s having here.
With a boost in incoming fiat, a massive devaluation of that fiat due to inflation, and a soon to be slashed BTC supply from the halving impact, this could be the ideal recipe for the next Bitcoin bull run.
Feature image from Pixabay